Originally posted by northernladuk
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Based on what I've seen so far I do think the IR35 legislation is very one-sided and unfair. HMRC seem to think they can decide who's an employee but their reasons don't stand up in court. Instead, they decided to roll out new legislation first in the public sector and then in the private sector in the hope that large organisations would make the conservative (and lazy) assumption that all contractors fall inside IR35.
If an end-client client decides that a contractor is actually an employee the fair response would be to offer that contractor a contract of employment. Instead, the HMRC proposal is that the end-client subtracts PAYE and NI from the contractor's invoices via an Umbrella as if he/she is an employee of the end-client. This gives end-clients all of the advantages of taking on a contractor and none of the disadvantages of taking on an employee while the contractor enjoys few of the benefits of being an employee such as security of employment. That's my understanding of it.
You can probably guess which party I will not be voting for at the general election.
Wait a minute...
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